For the second week in a row the Spring Texas real estate market sits at 2.2 months of inventory. Inventory levels are at the highest they have been in 2023. Six months of inventory is considered a balanced market and less than six months of inventory is considered a sellers market. The first six months of 2022 was a red hot sellers market. During that time frame, I didn’t ask listing agents if they had multiple offers. I asked them how many offers they had. The number of homes for sale was so low that almost every listing received multiple offers.
Fast forward from July 31, 2022 to August 9th, 2023 where during this time the Fed has hiked the overnight borrowing rate 7 times. Interest rates for 30 year conventional loans are around 7.125% and FHA loans are around 6.625%. According to Goldman Sachs, 99% of borrowers have a mortgage rate lower than 6% (or the current market rate). Of those, 28% locked in rates at or below 3% and 72% locked in rates at or below 4%. Move-up buyers do not have an incentive to buy. They are stuck in their houses. First time home buyers want to purchase but the higher interest rates have them stuck in rentals.
2023 is the year of the missing move-up buyer. For the buyers sitting on the sidelines, when the interest rates go down be ready to experience more multiple offers. Pent up demand exists in the marketplace. When will interest rates be back in the 6s or 5s? Depends upon who you want to get your projections from? Some sources are predicting the rates will be back in the 5s by the end of 2024.
Here’s the need to know numbers on the Spring Texas real estate market:
Average Sales Price to List Price – 99% Median Sales Price to List Price – 100%
Average Days on Market – 28 Median Days on Market – 15
Average Sales Price – $377,715 Median Sales Price – $317,413
Average Price Per Square Foot – $152.59 Median Price Per Square Foot – $152.44
Curious about how the real estate market is in your Spring Texas neighborhood? Reach out to Jill Wente, top rated Spring Texas Realtor to discuss if now is the right time for you to make a move.
Market stats are from the Houston Association of Realtors for Spring Texas properties classified as single family homes for the week of August 1 – August 7th, 2023
